UK REITs in ISAs 🇬🇧

[Anders (Anders Harrison)]

Hi Ian, I just stumbled across this post. Seems to suggest it do with the complication of getting the 20% tax credit on REIT dividends.

REIT return tax compliance

The below is from Moneyvator.com PIDs within a tax shelter( eg an ISA) You do not pay tax on PIDs held within tax sheltered accounts. However, unlike ordinary dividends that are paid gross (i.e. with no tax deducted), PIDs are generally paid with 20% tax deducted. This means the tax already paid needs to be clawed back . Your tax-sheltered account should be issued with a 20% tax credit associated with your PID income, which the company that runs your ISA, CTF or pension should use to reclai…